Tax Identification Number
Can anyone provide me insight into obtaining a Tax Identification Number for my virtual work? I don't have any employees, nor do I have a company name. I was wondering if I should apply for a TIN, or just continue to use my SSN for reporting earnings. I file a joint return with my husband.
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Replies to This Discussion
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Permalink Reply by Deb Lamb on -
Hi Leigh Anne!
I'm sorry I can't help you here but would love to hear what some of the responses are. If I run across anything with helpful information, I'll be glad to foward it along.
I know the irs.gov site might be very helpful too. Hang in there and surely someone will respond. There are so many outstanding and knowledgeable people on this site! Enjoy the rest of your day dear.
Deb :)
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Permalink Reply by Rebecka Melson on -
If you are working as a sole-proprietor and have no employees then you do not need a TIN, you can just continue to use your social security number.
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Permalink Reply by Leigh Anne Aston on -
Thanks, Rebecka. I understand I can continue to use my SSN, I'm just not comfortable giving it to all of my clients at tax time for them to use in filing their taxes (especially those who I only do a one-time specialty job for). Is obtaining a TIN a viable alternative? Can I even obtain a TIN if I have no company name or employees?
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Permalink Reply by Rebecka Melson on
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Yes, you can still obtain an EIN as a sole-proprietor without a company name. You can fill out the SS-4 application online (for free) at www.irs.gov. It will walk you through process step-by-step. You will get your EIN instantly.
When you file your personal taxes there will be a place to include your EIN number on your Sch C, which is the form for reporting your business income and expenses.
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Permalink Reply by Leigh Anne Aston on
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Thanks, Rebecka. This is great information.
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Permalink Reply by Kelly Williams on -
I operate as Kelly Williams Virtual Assistant, a sole prop, and obtained a TIN almost immediately because I am not comfortable giving my SSN out to anyone. There is just too much identity theft going on and that was my primary reason for obtaining one. My estimated tax payments and taxes are done using my SSN because as a sole prop, the IRS only recognizes me for tax purposes under my SSN. Also, as a sole prop, my business accounts don't use the TIN either or even my full business name for that matter. I obtained my TIN online as Rebecca mentions and it was instant.
Rebecca, is it safe to say not to give anyone a W-9 unless you bill then more than $400??
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Permalink Reply by Leigh Anne Aston on
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If I do obtain a TIN for earnings purposes, do you know if I will still be able to file my income taxes jointly with my husband? So far, we've been having his withholdings increased to cover my taxes come tax time and haven't needed to do estimated tax payments.
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Permalink Reply by Rebecka Melson on
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You don't need to send anyone a W-9 form unless they request it. It is their responsibility to obtain the information from you to send you a 1099. Businesses are only required to send 1099's to contractors they pay $600 or more.
You are still required to claim all business income received whether you receive a 1099 or not.
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Permalink Reply by Deb Lamb on
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Great discussions and have learned a lot. I have a question for anyone that might be able to answer this.
1-If we do not obtain an EIN or we still able to deduct those business expenses and file jointly with husband?
2-Or, would you suggest to file seperately?
3-Also, if we don't have an EIN will our SSN work when it comes to tax time and completing our taxes and being able to deduct our business expenses?
I'm a bit confused now on what to do! Thanks to all for all of your excellent guidance and help. I too am like Leigh Anne when it comes to this!
Deb :)
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Permalink Reply by Rebecka Melson on
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Deb,
You can certainly continue to file jointly. All you need to do to claim your business expenses is to file a "Sch C - Profit or Loss from Business" along with your 1040 Personal Income Tax Return. Also, if you have a separate room that you use exclusively for business you can also file "Form 8820 - Office In Home Expenses" to deduct a portion of your home mortgage, utilities, repairs & maintenance, etc.
You are not required to obtain on EIN unless you hire employees. Just take your business expenses to your tax preparer and they'll know what to do with them.
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